In an effort to win back customers lost to rivals, including T-Mobile US Inc., Sprint has introduced an “iPhone for Life” plan that lets customers get a new version of Apple Inc.’s smartphone every two years.
The service costs $70 a month and includes unlimited data, according to Sprint’s website. Customers make no initial payment for the phone or related taxes on the device because they are essentially renting it, the company said.
Chief Executive Officer Marcelo Claure hopes the new iPhone 6 will assist Sprint in winning back subscribers after a seven-year streak of customer losses.
Sprint Public Relations Manager Roni Singleton participated in an engaging Q&A with Loyalty360 to discuss the aggressive new plan.
What factors prompted the launch of the “IPhone for Life” plan and how does Sprint believe it will impact customer experience, customer retention, and customer acquisition?
For the past 30 days, Sprint has been out there challenging old rules, shaking up conventional wisdom in wireless, and improving the Sprint Value Proposition:
Launched the best value in wireless for families with Sprint Family Share Pack
Double the data of AT&T, Verizon, and T-Mobile for the same or lower prices
Launched the best value in wireless for individuals with $60 Unlimited
$20 cheaper per month than T-Mobile; AT&T and Verizon don’t offer unlimited.
Strengthened relationship with Apple
Exclusive special rate plan for iPhone 6 with $50 Unlimited
“iPhone for Life” leasing program first of its kind in the industry
Launched “Data Boost” plans for Boost offer double the data for $5 less than competitors’ current plan
How does Sprint plan to more effectively engage customers about this plan?
Sprint is back in the game and committed to delivering the best value in wireless. The Sprint Simply Unlimited Plan for the newest iPhone is yet another example of that commitment. Wireless customers are frustrated by low data allowances with immediate data overages and complicated monthly bills. While our competitors run from unlimited and introduce more complexities, we believe Sprint continues to deliver what consumers want.
We’re also giving customers a few ways to take advantage of this plan:
Sprint Easy Pay allows a customer to purchase a device with monthly payments over a 24 month term. At the end of that term, the customer owns the device. In addition, with Sprint Easy Pay the customer may pay an additional monthly fee to obtain early upgrades.
iPhone for Life Plan allows a customer to lease a device with a lower monthly payment than Sprint Easy Pay that is also due over a 24 month period. At the end of the 24 month lease, the customer has the option to (1)Turn in the current leased iPhone and lease another phone with zero down at signing (2) Purchase the leased iPhone (3) Continue leasing the iPhone on a month-to-month basis.
What makes this plan unique for customers?
The Sprint Simply Unlimited Plan for iPhone 6 offers customers a $30 savings per month versus T-Mobile’s $80 unlimited plan and AT&T and Verizon Wireless do not offer unlimited data plans.
What does Customer Experience/Customer Engagement mean to Sprint?
Our commitment to our customers remains unchanged. We’re continuing to enhance our customers’ experience. We strive to provide products and services that offer value and simplicity, cutting-edge devices, and the best overall wireless experience for customers. We continue to work with our specialists to drive the best and easiest possible service experience to our customers. We continue to enhance our self-service tools and are helping our customers learn how to find answers to their questions and make some kinds of account changes simply and conveniently —via the web, on their device or through other automation.
We also strive to resolve each customer’s issue on the first call, while improving each customer’s Sprint experience.
What is your definition of Customer Loyalty and has it evolved at all in recent years?
We know that our customers have a choice in their wireless provider/service. We value our loyal customers and want to reward them by providing them with the best value in wireless today.
Is this plan/engagement initiative a major priority for Sprint’s new CEO?
We will continue to innovate and shake things up as we already have. And we will push to become the Best Value in Wireless.